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August 29, 2005

NYSE member arrested in threat over merger-police

by Sam Savage

NEW YORK (Reuters) - A New York Stock Exchange member has
been arrested in connection with a telephone threat to a fellow
member about the NYSE's deal to buy electronic trading company
Archipelago Holdings Inc., New York police said on Monday.

NYSE seatholder William Higgins, a vocal opponent of the
terms of the deal, received a death threat in July, left on a
voice mail at his lawyers, Grant & Eisenhofer, according to the
law firm. Detective Bernard Hardy confirmed to Reuters on
Monday that a man has been arrested in connection with the
threat.

A police spokesman said Edward A. Reiss turned himself in
at 10:20 a.m. EDT on Monday. Reiss, who is 65 and gave an
address in Scarsdale, New York, is an NYSE member, the police
spokesman said.

According to the NYSE, Reiss has been an exchange member
since 1973 and has been leasing his seat since April 2004.

He was arrested for aggravated harassment, the police
spokesman said, and was given a desk appearance ticket -- a
written notice given by a police officer requiring the person
to appear in court at a later date. A spokeswoman for the
Manhattan District Attorney's office said the date he was due
to appear was September 27.

Neither Reiss nor his lawyer was immediately available for
comment.

"I am grateful for the swift, professional work by the New
York City Police Department, particularly Detective Bernard
Hardy, in arresting the man suspected of making a direct threat
on my life," said Higgins, in a statement through his lawyers.

"I am, of course, deeply troubled that anyone would
threaten me personally for challenging the New York Stock
Exchange in its proposed plans to merge with Archipelago
Holdings."

Higgins added that he had been an NYSE seatholder for more
than 35 years and was "passionately committed to the success of
the exchange."

A spokesman for the NYSE said it was a "law-enforcement
matter, not an exchange action." The spokesman added that Jim
Esposito, senior vice president of security, had worked with
authorities on the matter.